Dodgers' $2 billion sale is Magic

A saga for control of the Dodgers more than a year in the making culminated with Tuesday's announcement that a group led by Magic Johnson had been selected to purchase the team from outgoing owner Frank McCourt.

The group, Guggenheim Baseball Management LLC, will acquire the team for $2 billion upon completion of the closing process, according to a joint statement released late Tuesday. The group includes Johnson, former Atlanta Braves and Washington Nationals president Stan Kasten, controlling partner Mark Walter, Mandalay Entertainment chief executive Peter Guber, Bobby Patton and Todd Boehly.

According to the statement, McCourt and certain affiliates of the purchasers will also form a joint venture that will acquire the Chavez Ravine property for an additional $150 million. The deal will allow McCourt to emerge from Chapter 11 bankruptcy with all creditors paid in full.

The previous record sales price for a North American sports franchise was a reported $1.1 billion for the Miami Dolphins in 2009.

"I am thrilled to be part of the historic Dodger franchise and intend to build on the fantastic foundation laid by Frank McCourt as we drive the Dodgers back to the front page of the sports section in our wonderful community of Los Angeles," Johnson, the former Lakers star, said in the statement.

McCourt purchased the team, Dodger Stadium and the surrounding land in 2004 for $430 million. He retained sole ownership of the team in the wake of a bitter divorce with his wife, Jamie McCourt, who was fired from her position as CEO of the Dodgers in 2009.

But those problems only scratched the surface. Major League Baseball assumed day-to-day control of the Dodgers in April 2011. At the time, commissioner Bud Selig cited "his deep concerns regarding the finances and operations of the Dodgers."

It was worse than many imagined: The Dodgers filed for Chapter 11 Bankruptcy protection in June and McCourt, awash in debt, agreed to sell the team in November. Citing a court filing, The Associated Press reported that the team's debt stood at $579 million as of January.

The transfer in ownership represents a reversal of the team's financial fortunes and is certain to inspire optimism from a beleaguered fan base.

"This agreement with Guggenheim reflects both the strength and future potential of the Los Angeles Dodgers, and assures that the Dodgers will have new ownership with deep local roots, which bodes well for the Dodgers, its fans and the Los Angeles community," McCourt said in the statement.

The transfer of the team is expected to be completed by the end of April and is subject to approval in federal bankruptcy court.

Earlier Tuesday, MLB owners approved three groups to bid on the team at auction. One group was led by St. Louis Rams owner Stan Kroenke, the other by hedge fund manager Steven Cohen and biotechnology entrepeneur Patrick Soon-Shiong.

"I am truly honored to have partnered with such talented individuals and to be associated with the Dodgers organization," Walter said in a statement.

"We look forward to building upon the legacy of the Dodgers and providing long-term stability to one of the most revered franchises in baseball."

Dodgers general manager Ned Colletti said he met with members of several potential ownership groups, including a recent dinner with Kasten in Glendale, Ariz., where the team's spring training operations are based.

"It's too premature to say what exactly it will look like," Colletti said of the relationship between his staff and the owners, "but I'll see them all the time. (Kasten) is a very hands-on guy as well he should be."

Colletti said he has spoken briefly with Johnson on two occasions since Johnson first submitted his bid. He is more familiar with Kasten, whom he described as "relentless."

What that means for the Dodgers' fortunes is unclear. Colletti said he'd like to start by increasing the team's presence in Latin America "from a signing standpoint." He would probably like to see an increase in the team's payroll limit too, currently around $90 million.

"I was surprised that (the decision) occurred so rapidly after the approval of the groups today," Colletti said. "I'm looking forward and I'm glad that we were able to move on, to concentrate on what we do. The people that were involved in this, it's tough to beat the combination of people."

Colletti said that a press conference featuring McCourt and Guggenheim is scheduled for today in New York.